WhyDRS

This is heavily inspired by Consistent-Reach-152

Background

GME Certificate Of Incorporation: https://www.sec.gov/Archives/edgar/data/1326380/000132638022000080/a31-certificateofamendment.htm

• There is no mention of fractional shares

Truck Hero, Inc Certificate Of Incorporation: https://www.sec.gov/Archives/edgar/data/1648189/000119312515346140/d17828dex31.htm

• There is a mention of fractional shares

Delaware Code: https://codes.findlaw.com/de/title-8-corporations/de-code-sect-8-155.html

• If fractional shares are not mentioned in the by laws, then there are no fractional shares

JP Morgan: https://www.sec.gov/divisions/investment/noaction/2016/jpmorgan-041416-206(3)-incoming.pdf

• Fractional shares are not issued by the issuer but rather are account entries meant to represent the portion of a whole share (held by a broker or another party) that an accountholder would be entitled to (including ongoing appreciation and depreciation) if fractional shares existed and could be traded in the marketplace.

SEC: https://www.sec.gov/oiea/investor-alerts-and-bulletins/fractional-share-investing-buying-slice-instead-whole-share

• The way you buy and sell fractional shares differs between brokerage firms that provide this service to their customers.
• You may not have voting rights if you own fractional shares. Your ability to exercise proxy voting will depend on how your brokerage firm’s fractional share investing program works. Some brokerage firms allow it, with special procedures, and some firms do not allow it at all. Ask your brokerage firm whether you will have any voting rights associated with fractional share purchases.

While there have been times in the past that GameStop or what would become GameStop have issued fractional shares (ie mergers), those are one offs

Taken together, we get the following conclusions

• Only whole shares are allowed by GME
• Fractional shares are happening between the individual and the financial entity.